Article Number : 4210 |
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| Date | 2/19/2009 9:24:11 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4210 |
| Abstract | By Matthew Spieler LAS VEGAS—When it comes to the industry’s buying groups, the one thing that has always stuck out with the National Floorcovering Alliance (NFA) is the sheer size of its members. Comprised of some of flooring’s largest retailers and contractors... |
| Article | By Matthew Spieler LAS VEGAS—When it comes to the industry’s buying groups, the one thing that has always stuck out with the National Floorcovering Alliance (NFA) is the sheer size of its members. Comprised of some of flooring’s largest retailers and contractors, the combined annual sales volume of members is on par with buying groups whose membership is 10 or more times larger than NFA’s 38. While this has not changed, fact is NFA members are starting to recognize the power and influence they have at their disposal if they act in unison as opposed to individually. This was most evident at the group’s annual Surfaces meeting here the day before the industry’s all-in-one market officially opened for business. “Before we acted more like an association,” Jeff Macco of Macco’s Floor Covering in Green Bay, Wis., and NFA president, told FCNews. “Now we are seeing everyone acting more as a cohesive buying group. We will always be independent but everyone is starting to recognize the advantages of acting as one—like an individual group, not a group of individuals.” The biggest testament toward Macco’s assessment is the carpet roll-buying program NFA conducted with Shaw Industries. Recognizing the current state of the economy, the group worked out a special deal with the mill on the stipulation the membership would purchase a minimum number of selected rolls. With a commitment of at least 1,400 rolls and a few million dollars, the members showed the kind of influence they can yield. “I always wondered if we moved together as one how big a stick could we yield,” Macco noted. “This was a tremendous effort to generate that kind of support, especially in a down economy.” He added the roll buy deal will have “ramifications that are long lasting. The effects of this will be like the Armstrong deal in that it woke other vendors up to think outside the box and figure out ways to work with us.” Sam Roberts of Roberts Carpet and Fine Floors in Houston and NFA’s immediate past president, agree the Shaw deal will be “a wake-up call to others that they need to come to us with more specials. It is a valuable lesson and they will work harder next time not to be left out.” The Shaw deal, as well as other special programs NFA has worked out or is working on with existing and potential suppliers, stems from the deal the group has had in place with Armstrong (FCNews, May 15/22, 2006). In a nutshell, the program works in such that members place orders with and be invoiced directly by Armstrong, with distributors still involved in the fulfillment process. Macco called the Armstrong program “the best thing to happen to NFA in the last few years” and told the members “we need to continue to support it.” It is the Armstrong agreement, he added, that provided the spark for other vendors to approach NFA about doing a similar type of program.” Macco noted there are more than a half dozen suppliers who have either formed or want to form a private vendor agreement with the group. “The vendors are looking at NFA and seeing not only strength as a group, but that we are willing to support them,” noted John Fitzsimmons of Fitz Flooring in Calgary, British Columbia, Canada. “As members we realize the importance of supporting each other. When we do, we can accomplish great things—just look at the Armstrong deal.” Tier II vendors Another avenue that shows the strength of NFA as a unit is its Tier II vendor program. Lisa Browning, NFA’s executive director, noted this year’s showroom featured more than two dozen suppliers displaying their wares and programs to the membership. “This year there are 25 vendors exhibiting.” And this did not include those who did not exhibit but, rather, made private presentations to the group. Now in its third year, Macco said the Tier II program is an opportunity for the smaller vendors to stand out. “This is a chance for them to meet with every NFA owner and buyer, which is why it has been a well-received program by the suppliers. It is also a great way for each of us to see these companies in an intimate, one- on-one setting.” While not every member does business with every vendor, especially the smaller ones, he told the membership it is “important for everyone to visit with each and every partner displaying— even if you’re not buying from that particular one.” And, even though the vendors get each members’ undivided attention in a controlled environment, Macco said they still need to make the sale themselves. “It’s a huge opportunity to deal directly with the owners and buyers of the industry’s largest retailers, but the supplier still has to sell to each member.” Rick Carson of bamboo maker CFS Corp. called working with NFA members a joy. “It’s fun to work with professionals.” He should know, having done this for more than 40 years. “This is a very knowledgeable group that understands what we have and how to sell it. There are no games played here, so it’s our job to treat them right.” Recognizing NFA still has a ways to go before its looks and acts like a traditional buying group and acknowledging it may never get there, Macco said, “It’s been a fun journey to see the progress. We’re all innovators in our own way and it’s been good to see the breadth of ideas coming from both the members and our suppliers on how we can forge stronger, long-lasting relationships. And that’s more important than ever in today’s economic climate.” |